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Seemingly Irrelevant Factors and Willingness to Block Polluting Investments

Author

Listed:
  • Nicolás Ajzenman

    (McGill University/IZA)

  • Lenin Balza

    (Inter-American Development Bank)

  • Hernán D. Bejarano

    (CIDE/Economic Science Institute/Chapman University)

  • Camilo de los Rios

    (Duke University)

  • Nicolás Gómez-Parra

    (Inter-American Development Bank)

Abstract

Using an online multi-country video-vignette survey experiment, we measure bias against extractive industries and foreign firms in individuals’ perceptions and preferencesrelated to industrial projects with potential economic benefits and environmental costs. Individuals face a hypothetical industrial investment project with arandomly assigned implementing firm, which varies in one or two dimensions: nationality (foreign or national), and industrial sector (extractive or generic). We elicit several incentivized and non-incentivized measures of acceptance of hypothetical investments. We find a precisely estimated null effect on willingness to pay to blockthe projects across experimental treatments: respondents express similar reactions to the same information independently of the firms’ origin or industrial sector.

Suggested Citation

  • Nicolás Ajzenman & Lenin Balza & Hernán D. Bejarano & Camilo de los Rios & Nicolás Gómez-Parra, 2024. "Seemingly Irrelevant Factors and Willingness to Block Polluting Investments," Working Papers 319, Red Nacional de Investigadores en Economía (RedNIE).
    • Handle: RePEc:aoz:wpaper:319
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    File URL: https://rednie.eco.unc.edu.ar/files/DT/319.pdf
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    More about this item

    Keywords

    Experimental Economics; Extractive Industries; Perceptions; Willingness–to-pay; Valuations;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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